Wolverhampton Wanderers are facing a financial nightmare and the prospect of a
mammoth £25 million wage bill in League One if they suffer relegation.

Steve Morgan, the chairman, has revealed that no Wolves players have clauses written into their contracts to take pay cuts should they drop out of the Championship, raising the possibility of a major squad clear out at cut-price fees.

Roger Johnson is the top earner on £25,000 a week while midfielder Jamie O'Hara earns around £1 million a year. Kevin Doyle and Stephen Hunt, the Republic of Ireland internationals, also rake in over £16,000 a week and player wages are already a substantial drain on finances, with Morgan admitting Wolves are losing £6.5 million a year.

The majority of Wolves's players had their salaries slashed by around 40 per cent following demotion from the Premier League last May, but there is no agreement in place if they crash to a second successive relegation.

Morgan said: "It’s up to us to make sure we don’t get into a tail spin. The contracts were done when we were in the Premier League. There was no question or thought about going into League One. None of the contracts take that into account."

Wolves, who have lost an estimated £30 million in revenue since dropping into the second tier, are in the bottom three and could be bottom by Tuesday night if they lose at Millwall and Bristol City defeat Brighton.